Some tips on finding Exposure Drafts (ED) & comment letters (Jan 2014 to May 2015).

AASB:

You can choose between the following ED:
Exposure Draft - ED 259 Classification of Liabilities (Proposed amendments to AASB 101) - February 2015
Exposure Draft - ED 258 Disclosure Initiative (Proposed amendment to AASB 107) - December 2014
Exposure Draft - ED 257 Classification and Measurement of Share-based Payment Transactions - November 2014
Exposure Draft - ED 256 Removal of Cross-References from Financial Statements to Other Documents - October 2014
Exposure Draft - ED 254 Measuring Quoted Investments in Subsidiaries, Joint Ventures and Associates at Fair Value - September 2014
Exposure Draft - ED 253 Recognition of Deferred Tax Assets for Unrealised Losses - August 2014

IASB:

There are a few to choose from there, but make sure the ED is betweenJan 2014 and May 2015.

I HAVE TO DO ED 258 CASH FLOWS

4 letters / 0.5 / =
Major issues / 2 / =
Agree / Disagree / 2 / =
Theory (3) / 2 / =
Critical / 2 / =
Academic__ / 0.5 / =
Research__ / 0.5 / =
Referencing / 0.5 / =

I have considered ED 258 [] & the following 4 comments letters (enclosed as an attachment):

  1. BusinessEurope
  2. X
  3. X
  4. X

Major issues:

From Exposure Draft:

(a)a reconciliation of the amounts in opening and closing statements of financial position for each item for which cash flows have been, or would be, classified as financing activities in the statement of cash flows, excluding equity items (proposed paragraph 44A in IAS 7);

(b)when appropriate, additional information on matters that are relevant to an understanding of the liquidity of the entity (proposed paragraph 50A in IAS 7); and

(c)early adoption of the proposed amendments to IAS 7 (proposed paragraph 59 of IAS 7).

(d)The proposed disclosure in paragraph 44A satisfies the information needs of users in regard to disaggregation of amounts presented in the financial statements. However, the cost to entities of the disclosures required by paragraph 44A would be expected to exceed the benefits to users. Based on paragraph 3(a) of the ‘Tier 2 Disclosure Principles’, applying the ‘user need’ and ‘cost-benefit’ principles of the IFRS for SMEs the AASB proposes that paragraph 44A should be excluded in the Tier 2 disclosure requirements.

(a)The ED is considering having a reconciliation for all financing activities item (exc. Equity) back to their statement of financial position account balance. For e.g. with long-term liability to the bank, that would include a reconciliation back to the ‘loan’ account balance in the balance sheet.
[private interest theory – discussed further]

(b)[private or publicinterest theory – discussed further]

From 4 Comment Letters:

  • Comment letter # 1: Federation of Accounting in Thailand:
  • When finance cost or interest expense are presented in operating activities, it causes the total cash outflow to be different from total cash received or paid in financing activities.
  • X
  • X
  • Comment letter # 2:BusinessEurope:
  • There are too many little changes to justify the change of the standard via an ED. The IASB should wait for bigger changes before making a change to the ED.

Agreement / Disagreement:

Comment Letter / Main suggestions / Agreement / Disagreement
Federation of Accounting in Thailand: /
  • Summarise the above (1 line max for each item)
/ Agrees with Comment Letter # 3 for the following:
BusinessEurope /
  • Summarise the above (1 line max for each item)
/ NA as suggestions raised are completely different from other letters.
  • Summarise the above (1 line max for each item)

  • Summarise the above (1 line max for each item)

Theories analysis:

For each of the issues considered above [(a) – (d)], the relevant theory was mentioned after the actual issue. We are now going to apply the 3 theories of public interest, private interest & capture interest in more detail.

  • Explain the 3 theories
  • Apply them in DETAIL to each of the issues above

Issues / Relevant theory / Application of the theory
The ED is considering having a reconciliation for all financing activities item (exc. Equity) back to their statement of financial position account balance. For e.g. with long-term liability to the bank, that would include a reconciliation back to the ‘loan’ account balance in the balance sheet. / Private interest theory / Why are you saying this is the private interest theory?